Consumer Behavior

by

Anoop Kumar Gupta MAIMS

What Is Consumer Behavior?

Activities people undertake when obtaining, consuming, and disposing of products and services

A field of study that focuses on consumer activities Scope goes beyond just why and how people buy to include consumption analysis

Consumption Analysis
Why and how people use products in addition to why and how they buy.

Customer and Consumer

Customer is a word typically used to refer to someone who purchases from a particular store or company Consumer is the term which more generally refers to anyone engaging in any of the activities of evaluating acquiring using or disposing goods and service Ultimate consumer are those individuals who purchases for the purpose of individual consumption.

Marketing Application of Consumer Behavior

Marketing strategy To satisfy target Consumer need Regulatory policy To protect consumer
Informed individual To better understand How societies function

Consumer research

Personal characteristics Product characteristics Consumer behavior

Understanding Consumer behavior

Behavior theories

Consumption situation

Marketing strategy

market Understanding consumer behavior is strategy basic formulation

consumers react to market strategy determines success or failure

Consumer Influences

Organizational Influences

Obtaining

Consuming

Disposing

Consumer Behavior

Consumer Influences Culture Ethnicity Personality Family Life-stage Values Income Available Resources Attitudes Opinions Feelings Motivations Past Experiences Peer Groups Knowledge

Organizational Influences Brand Product Features Advertising Word of Mouth Promotions Retail Displays Price Quality Service Store Ambiance Convenience Loyalty Programs Packaging Product Availability

Obtaining

Consuming

Disposing
How you get rid of remaining product

How you decide How you use the you want to buy product

Other products you consider buying

Where you buy

How you store the product in your home

Who uses the product

How much you throw away after use

If you resell items yourself or through a consignment store How you recycle some products

How you pay for product How much you consume How you transport How product product home compares with expectations

CONSUMER INFLUENCES Culture Ethnicity Personality Family Life-stage Values Income Available Resources Attitudes Opinions Motivations Past Experiences Feelings Peer Groups Knowledge

ORGANIZATIONAL INFLUENCES Brand Product Features Advertising Word of Mouth Promotions Retail Displays Price Quality Service Store Ambiance Convenience Loyalty Programs Packaging Product Availability

OBTAINING How you decide you want to buy Other products you consider buying Where you buy How you pay for product How you transport product home

CONSUMING How you use the product How you store the product in your home Who uses the product How much you consume How product compares with expectations

DISPOSING How you get rid of remaining product How much you throw away after use If you resell items yourself or through a consignment store How you recycle some products

Consumer Behavior

The Marketing Concept

The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives Satisfaction with an exchange depends on satisfaction with consumption of product and the exchange of money

Some issues that arise during stages in the consumption process

Why Study Consumer Behavior?

Consumer Behavior Determines the Economic Health of a Nation

Consumer Behavior Determines the Success of Marketing Programs

Why Study Consumer Behavior?

Consumer Behavior Determines the Success of Marketing Programs
Marketing can be used to influence brand choice and purchase, while Demarketing can influence people to stop harmful consumption The Customer is King Organization influenced by consumer needs and wants

Why Study Consumer Behavior?

Consumer Behavior Determines the Success of Marketing Programs
Organizations that are Customercentric use a total marketing approach to focus their resources on satisfying customers Marketing Process of transforming or changing an organization to have what people will buy

Why Study Consumer Behavior?

Consumer Behavior Determines the Economic Health of a Nation

Consumer Behavior Determines the Success of Marketing Programs Consumer Behavior Determines the Economic Health of Everyone

Why Study Consumer Behavior?

Consumer Behavior Determines the Economic Health of Everyone
The individuals decisions as a consumer determine their economic health by making more effective consumption decisions while avoiding deceptive practices harmful to them

Why Study Consumer Behavior?

Consumer Behavior Determines the Economic Health of Everyone
Public policy leaders and social commentators study consumer behavior to alleviate overconsumption and underconsumption by educating consumers about problems and providing assistance

Educating Consumers About Health

Understanding consumers issues or problems and developing methods to reach and educate consumers. e.g. Dum hai to bahar nikal ad of Nestle Milky Bar Chocolate. The ad urges children to play outdoor and grow healthy(indirectly to shun T.V. watching).

Why Study Consumer Behavior?

Consumer Behavior Determines the Economic Health of a Nation

Consumer Behavior Determines the Success of Marketing Programs Consumer Behavior Determines the Economic Health of Everyone
Consumer Behavior Helps Formulate Public Policy

Why Study Consumer Behavior?

Consumer Behavior Affects Personal Policy
Personal policy includes how you behave towards others and in buying situations, your values and beliefs, and how you live your life A persons economic quality of life is determined by personal policy

Evolution of Consumer Behavior

Supply Chain:
all the organizations involved in taking a product from inception to final consumption - Manufacturers - Wholesalers - Retailers - Facilitating Organizations

Consumers Increased Influence on Business

Evolution of Consumer Behavior

Consumers Increasing Influence

Wholesaler

Manufacturer

Retailer

Consumer

Manufacturing Orientation U.S. 1750-1850 1850-WWII 1760-WWII

Selling Marketing Consumer Orientation Orientation Orientation 1970-2000 1970-2000 2000+ 2000+

Europe 1750-1850

Consumer Orientation
Beyond a marketing focus

How all organizations in a demand chain adapt to changing consumer lifestyles and behaviors bringing product design, logistics, manufacturing, and retailing together
Role of consumers in shaping many aspects of lifesociety, government, social programs, health cares, and other areas